McKesson Corp. v. Islamic Republic of Iran

539 F.3d 485 (2008)

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McKesson Corp. v. Islamic Republic of Iran

United States Court of Appeals for the District of Columbia Circuit
539 F.3d 485 (2008)

RW

Facts

In 1955, the United States and Iran signed a treaty guaranteeing just compensation in the event that one signatory took private property belonging to the other signatory’s citizen or national. Following Iran’s 1979 revolution, the newly proclaimed Islamic Republic of Iran (Islamic Republic) (defendant) confiscated property belonging to McKesson Corporation (plaintiff). McKesson sued the Islamic Republic for damages. A federal district court analogized the 1955 treaty’s guarantee of just compensation to a similar guarantee in the Fifth Amendment’s Takings Clause. The court ruled that, just as the Takings Clause conferred an implied private right of action, the 1955 treaty impliedly allowed McKesson to seek redress through the courts. The Islamic Republic appealed the district court’s ruling to the District of Columbia Circuit.

Rule of Law

Issue

Holding and Reasoning (Griffith, J.)

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